As Bitcoin bounces back, Ethereum is on the verge of taking off from the $2,600 support level. With an intraday surge of 0.72%, Ethereum is preparing to create a morning star pattern.
Will the bull run in Ethereum bounce off with a breakout rally to hit $4,000? Let’s find out.
ETH Chart Signals Potential Reversal
In the daily chart, the Ethereum price trend reveals a bearish breakdown of a falling wedge pattern. During the breakout, the Ethereum price dropped from the 50% Fibonacci level at $3,315 to the crucial support of $2,600.
Currently, Ethereum trades at a market price of $2,647 with an intraday rise of 0.72%. This hints at a potential reversal to retest the broken trend line, starting with the morning star pattern.
Supporting the bullish chances of an upside reversal, the daily RSI line is on the verge of bouncing off from the oversold boundary and the local support trendline. However, despite the bullish signal in the momentum indicator, the 50 and 200 EMA lines are on the verge of giving a death cross. This will trigger a sell signal in the price action indicator.
Ethereum Must Hold $2,600 for a Breakout
As Bitcoin sustains dominance above the $2,600 support level, Ali Martinez highlights his long-coming rising channel pattern. In his recent X post to Ethereum, the crypto analyst suggests a potential bounce back towards $3,000 or even $4,000within the channel pattern.
However, the critical criterion remains the bullish dominance at $2,600. In case of a fallout, the Fibonacci levels in his chart project a potential drop to 61.80% at $2,275.
ETH Short-Term Setup Hints at Breakout
On a shorter time frame, Carl Moon, a crypto enthusiast, has highlighted a potential breakout rally in Ethereum. In the daily chart, a larger falling channel pattern is highlighted by the analyst with a long-standing support trendline.
Currently, Ethereum holds over the local support and anticipates a bullish reversal to reclaim the $4,000 mark. However, the critical criterion for this setup remains Ethereum’s ability to overcome the local resistance trendline.
ETH Price Target
As per our Ethereum price analysis, a bullish bounce back in Ethereum will likely challenge the 50% Fibonacci level at $3,315. However, with the broader market recovery and a surge in institutional flows in the US spot Bitcoin ETF, the uptrend could revisit the $4,000 psychological mark.
On the flip side, the crucial support for Ethereum remains the $2,200 psychological mark.
Source: https://www.cryptonewsz.com/ethereum-holds-2600-will-bulls-take-control-to-hit-4000/